GoM approves refund to BSNL, MTNL

New Delhi, Sep 12, 2013, DHNS: 3:08 IST

In an attempt to revive the ailing state-run telecom companies–BSNL and MTNL– a high level ministerial panel on Thursday decided to refund the money paid by these companies for surrendering BWA spectrum worth more than Rs 11,000 crore.

The Group of Ministers (GoM), headed by Finance Minister P Chidambaram, also took a decision on providing pension to MTNL employees, which is likely to cost about Rs 570 crore a year.

“The Group of Ministers took firm decisions, one in relation to pension of MTNL employees, the second in relation to the spectrum that was allocated both to the BSNL and MTNL in the 2.5 GHz band and one other small issue,” Telecom Minister Kapil Sibal said. He said the decision will now be taken to the Cabinet for approval.

Earlier the government had given spectrum to both the companies which paid auction prices of airwaves.